up 7.5% in the extended hours. that will do it for me today. the dow is down 58 points. have a great night. see you tomorrow on "closing bell" live tomorrow from chicago. follow me on twitter and google-plus. have a good night. "fast money" begins now. tired of hearing about it yet? okay. let's rename it. let's call it the paper precipice. >> when we talk about a grand bargain, and a big deal that might happen here in washington, it seems clear that labor leaders won't get everything they want, neither will folks up on wall street or in the business community as well. >> whatever you call it, it's not helping the markets. and big companies like apple and microsoft aren't pulling their weight, either. >> there's a bomber squid and sinoski squid and hear the stock trading down. obviously when someone leaves it isn't necessarily a good sign. >> at least we've got some investors who are hopeful, or dil delusion delusional. >> part of the transformation of jcpenney, gone to launch the

fastest growing specialty retail of all time, new jcp. >> it's a confusing market. let's make sense of it. "fast money" starts right now. live from the nasdaq market site in new york city's times square i'm melissa lee. here are top three trades. tech troubles, major stumble for microsoft as the head of windows leaves. plus, johnson's foley. jcpenney drops again. is ron johnson putting the viability at risk? the traders will detail that. well, isn't that special? should you be betting on big, bad dividends to pay your investing accounts ahead of the fiscal cliff deadline? we have special ideas later on in the show. first, facebook, losing friends in the marketplace. dropping below 20 bucks a share ahead of tomorrow's big lockup expiration, the mother of all expirations. 804 million shares could flood the market.

is the selloff overdone? is it finally time to buy this dip? dan, do you think we're going to see a bounce? do you think we should buy it? >> fundamentally their challenges are well known here. this has been a technical setup. we had the lockup in august. the stock was weakened at that. we had the lockup last month. the stock was weakened at that. the stock is down from $25 from the better than expected earnings announcement just a month ago. to me i think that the sell you see tomorrow is likely a buy, more from a technical setup just because of all this pressure that they've had. the overhang. on a fundamental basis, give this company probably a couple more quarters. >> let's be clear with our audience. we're talking about a trade, not necessarily talking a six-month or one-year investment here. so for a trade, given the negative sense -- >> definitely a buy. >> what? really? >> definitely a buy -- >> that was quick. >> i got this one, too. i want to take this one. >> my bad. >> so, to dan's point, the cost to borrow the stock has

decreased. shorts have decreased in the name. it's sort of a telegraph punch at this point, not based on fundamentals. it's a technical setup to buy this just for a little bit of a bounce. >> two of the traders think it is a buy on a dip. mike santelli, senior columnist for yahoo! finance joins us with his take. good to see you. >> you, too. thanks a lot. >> in terms of what the stock will do torn, do you think we're overblowing this lookup expiration? there was a research note out by pivotal research calculating how many shares will actually come to market. this analyst says probably 486 million. >> obviously a big number that can get unleashed. look, i think the big thing to keep in mind is the reason we care so much about the lockup is because bigger than typical, for an ipo, amount of stock that can flood the market, the supply/demand matters a lot more because also you don't have it in constituency with this stock. the growth investors are not

persuaded there's going to be a multiyear growth story. i think it's going to be trapped in this range and, yes, when we get this welling up of anxiety about a new block of stock coming out like tomorrow maybe it means we've overdone it to the downside for the very moment. >> in terms of the investors you spoke to, what point does it become a value play and attract one constituent of investors? >> i think it starts to when you get below a price where it is now. when it gets toward the mid-teens. that's a wish list. a lot of people say, i'd like it at 15 therefore they hope it's going to get there. they could buy it. that means it never does. i think that's kind of the zone where people say i would take a shot. >> how much do you think this is just speculation on the speculation? in other words, the short interest on this stock peaked in august 20th around 15%. it's now about -- it's somewhere around 3% to 4%. and i think, again, the people playing this lockup trade have played it. and the other assumption is that the others -- you know, there's 721 million shares left over after the ipo that could have

been sold. >> right. >> the assumption here is at this valuation a lot of people want to jump out of window. that assumes a lot of people weren't dedicated long-term investors which i don't assume. >> i agree with every point you made there. because the lockup expired, you can sell, doesn't mean you're going to sell. this isn't traditional insider employee number two and three who get the sell and got the stock for nothing as part of their compensation. i do think it's a matter of early investors, you want to monetize. by the way, again, big picture here, the company seems run for the employees. $2 billion of stock compensation expense. every single year. until the street gets some kind of sense they can operationally get ahead of that, i think it's a trap stock. >> is it a good sign or bad sign a lot of institutions have already sold? the fidelitys of the world greatly reduced their stakes. morgan stanley, oppenheimer, earliey on in the process. is that a bad sign even institutional investors who were longer term investors have already jumped ship? >> given where the stock has

gone, people are not yet there clinging and waiting to sell. yes, i think a matter, you don't want to have people are kind of pent up sellers, potentially coming after the facts. so, yes. >> you hit on something that's really important about facebook. the ceo told you he's not going to run the company for wall street. what are the investors you're talking to looking for as the signal? we might have seen it this summer a little bit. they started the talk about how they're going to run the company. maybe on a quarterly basis. what else do they need to do in your eyes or investors' eyes to make people believe that? >> look, i think you have to look at things that are basic to the business. not just is management going to talk to wall street in nice tones? i think it's a matter of user intensity. can you get some faith they're actually not losing that, that the numbers are what they say? the story today, maybe the user base is overstated even as they admit because of false identities out there. yes, i think those things have to matter longer term. it's not just whether management is happy. >> that's an excellent point, but the idea is, is it too far

gone for them? i'm talking about a technical setup. that's it. to buy the stock. but as far as something else, we've had this debate on the desk since the ipo. where you have a stock like sirius satellite that people love to have or people use, and they have a lot of subscribers but the stock can't get out of its own way. is there a chance facebook, i heard you say in the middle teens, is there a chance facebook becomes this type of a stock? >> i don't know if i want to get to sirius right there because i think facebook is much more integral to people's lives than sirius ever was. it was kind of out there in the air. i think there's a risk. that's the risk in this stock. that's why it hasn't been able to get sustained momentum anywhere near the ipo price. >> unlike, though, sirius, the users for facebook, a lot of them are dogs and babies and companies. it's a very -- i mean, they're not going to go out and buy the stock. >> they're not paying a monthly subscription fee. >> mike, always good to see you, mike santoli of yahoo! finance.

microsoft windows 8, the man who led the development is now out. the stock took a hit today. will the dep paparture leave th company in a lurch and shareholders with another lost decade? i feel like it wasn't long ago when we were talking about steve ballmer and how he should be ousted because the stock had done poorly over the last decade, it was a lost decade for microsoft. fall of last year to march of this year, that's when the stock started perking up. we gave ballmer a pass on this because there's doubts about window 8. >> all the excitement from the stock, from 26 all the way into the 30s was about a product cycle. pc upgrade cycle. they don't exist, people. at the end of the day when you look at large enterprises they don't even have the last version of windows on their systems right now. to me, if that was why you're buying the stock, that wasn't a great reason. when you think about the acquisitions they made, innovate, compete with companies like apple they're incapable of

doing it. at the end of the day, other than xbox, there was a lot of false hope. if you're buying the stock, $55 billion in cash, it's a great place to park cash. that's fine. it looks like a bond in some ways. don't buy it because you expect them to innovate on the product line. >> the other thing i think that's going on here is people felt there was going to be some transition for microsoft and the touch hardware. the transition i think people felt was going to bring microsoft up to the table with apple and make this operating system that much more relevant. and i think that's a big concern. and, again, this departure today is something that people think is really ultimately telling you it's not working and it's coming at the wrong time. i think citibank had a great quote as a title of their article, changing quarterbacks in the middle of the playoffs which is telling you this thing barely had a chance to test the waters yet. >> is this the same -- >> that spells trouble. >> is this the same as scott leaving apple? at the time -- are we -- >> that's a comparable.

>> two departures of executives shortly after a product launch. >> absolutely. especially after the product launch of the surface we have out. this was supposed to integrate everything. that's been the problem with microsoft. vy they have a lot of hodgepodge things you hope they can execute on and lock into the enterprise. that's where their stronghold is. if they can monetize that base, we talk about facebook monetizing a base, microsoft still has a foot hold in the enterprise. they've not been able to do it. i think this is a big problem for microsoft. now who's left to execute? >> michael at the options desk. what did you see in microsoft today? >> facebook, very bearish activity. microsoft, very bullish. it's interesting, that b.k. was just talking about enterprise. you know, i've taken a look at this windows 8 product. it seems like a consumer product for me. it seems like a grown-up, all in one pcs, a grown-up tablet for home use. it's hard to imagine enterprises

switching to that type of environment. >> that's my point exactly. i think may blew it on the enterprise side. >> they may be able to get leverage with consumers and get buzz going. i don't think it's going to be earth shattering. i don't think it's a bad product either. >> damned if you do, damned if you don't. if it was geared toward enterprised they would say they're not going to stack up to apple in any way, shape or form. >> put a product out people wanted to buy, it wouldn't matter. >> the biggest issue is the apps. people buy the consumer side for the apps. the app store, they didn't have it. they didn't have anything that was even close to being competitive with apple. >> right. let's move on. we got to hit cisco. rising in the after-hour session. better than expected earnings. mary thompson has the details. >> we have guidance from cisco on the current quarter. it expects earnings between 47,

48 cents a share which would put it in line with estimates. expecting revenue growth of 3.5% to 5.5% in the boundary of estimates of about 4.5%. of course, the company coming out with better than expected results beating the street by 2 cents for the last quarter, 48 cents a share revenue. beat expectations. on the call, ceo john chambers noting that kind of revenue growth in this quarter compared to the peers is impressive for the firm. additionally its gross margins than the company expected. 62.7%. back to you. >> mary thompbson, thanks. wall street big weight bill ackman throwing his weight behind jcpenney. separating fact from fiction on this former heavy hitter. some stenberg is coming up. the good, the bad and the ugly. gross is in the hot seat with us. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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welcome back to "fast." fast or fiction? ron johnson is putting jcpenney's survival at risk in today's "the new york times," deutsche bank analyst rom said the down trend in sales is worsening and could lead to a gr going concern problem next year. is this fast or fiction? what do you say? >> you know, i think turnaround stories are probably always at risk of putting the company out of business. right? isn't that in essence what a turnaround story is? what i found very curious is that they make $269 price per square foot in the stores revamped versus $134 in the stores that need to be revamped. here's the downside. he's got 90% revamping to do. so there's a lot of stuff and

could cost $1 billion. to a company with half a billion on hand, i think that's where we're in that tight spot, but macy's makes $174 price per foot. i think we're being a little bit too hard on them at this point. >> let's delve deeper. to be fair, we read from the note from deutsche bank. he outlined reasons why maybe jcpenney has a little bit of time. he said in terms of the cash position it intends to end the calendar year with $1 billion of cash on hand. but market share and sales are declining. so you start getting concerned about cash when you go through the first half of 2013. after that jcpenney has a couple options. use the revolver and/or scale back on shop installations, i.e., refurbishing the remaining stores. >> he doesn't want to use the revolver. as soon as you do that's -- >> that's a concern. >> that is a bad thing if we get to that point.

but jcpenney had sales issues before he took over. he basically has a call option on this thing. i don't particularly understand the strategy. i'm not sure that it actually is making if anything different than any other place than a macy's. maybe he makes more money for square foot. is he going to drive product into the store? doesn't have the product like apple had. doesn't have a monopoly here. i would not be buying the stock at all. >> bill ackman, major investor in theppeared on "squawk box" earlier today. listen to how he said ron johnson is handling the stores' growth. >> what this is is the fastest growing retail startup of all time, high dollars per square foot, high gross margins. stick with me. low overhead. he's winding down the old jcpenney and using the cash flow from the old jcpenney to fund the growth of this business. >> is that the right plan for penny's?

does that even make sense that argument? let's bring in tom stenberg of the highland consumer fund, also founder and former ceo of staples. tom joins us on the "fast line." speak to speak with you. >> listened to your conversation about jcpenney. sometimes you're doing all the things that are theoretically correct and make sense, but takes a long time to get traction. and the question is, will the investors have enough patience until ron johnson gets there? i'm not so sure. >> in this environment, sotom, does it get to a point where sales are declining so much you're in this death spiral where you can't get the shoppers back because they've defected, gone elsewhere, whether in the stores or online. >> you know, i think there's a problem any time you try to transform your format. and this high/low kind of game is a crazy game, but unfirefight, there's a lot of people that look into it including a lot of their

customers. there's a lot of conversation about what's going on on black friday and will people hit the sales earlier? there's nothing black about black friday. staples, our gross margins were the 30s and 40s. black friday they were near zero. the notion of this prosperity, just escapes me. >> hey, tom, you know, we've talked at length here about their dwindling kind of same-store sales and cash position. but also this technological overhaul of their internal systems front to back end and their logistics is also something that makes us feel like they may be in disarray internally in addition to the message they're sending on the vision. t do you agree with any of that? >> changing systems is a really, really difficult thing, and to try to do it to the degree these guys are trying to do it, at the same time you're changing your format, changing your assortm t assortments, that's an awful lot of change at one time. >> tom, it's brian kelly. when you were at staples, obviously you had only a couple competitors.

jcpenney seems to be multiple competitors. aisle not really sure they differentiate. what can they to in your mind in general to different shat and what would you say that's a really exciting idea? >> i'm not sure they can. i think your comments earlier about the product line being is genius and similar to others, i think unfortunately is true. the notion, and their upscale customers are not especially upscale. if you have fancy brands coming over from europe, jcpenney is not exactly your first stop. >> i want to talk about your current investments. they seem to be specialty retailers. do you think that is where the most opportunity is these days to go to these retailers that really offer something very unique in the marketplace? >> well, you know, i made my living originally in big box retailing. starting staples. been involved in petsmart. on the board of carmax. the consumer fund, we haven't seen these big box opportunities. we're investing in retailers like j. mclaughlin, traditional kind of preppy retailer, invested in david t., which is a

shoe retailer. and we're invested in pink berry and other nichey type of contests where we think there's more opportunity certainly in the near term. >> what have you seen in terms of the consumer? are you worried, fiscal cliff, we talk about that every five seconds on cnbc. is that going to have an impact? >> the folks here are deeply concerned about it. i don't think the american populous as a whole has focused on it yet. i'm worried as this begins to take over the headlines over the next few weeks how it will impact christmas shopping and obviously the impact would not be good if that happens. >> could be bad timing there. tom, thanks for your time. >> thanks for having me. >> tom stemberg of the highland consumer fund. >> i have one comment on jcpenney. everybody is piling on this thing. >> do you like it? >> he likes the plain pocket jeans. >> i watched, back in september the stock rallied from 20 to 30 in anticipation of the analyst meeting. ron johnson was in his glory.

they are doing something different. make no mistake about it. we haven't seen what they're doing yet. i'm not telling you there's inherent value here and not tell you it's going to work. i think there's going to be a massive short squeeze some time very soon. 40% short interest in this stock here. this is a tradeable situation. if this thing has one more down day on big volume i think you get in there and buy it, i think there's going to be a great opportunity, possibly back up to 20. >> silence speaks volumes on plain pocket jeans. >> there you go. >> he has many a pair. time for pops and drops. a pop here for big lots. down 5%. b.k.? >> yeah, big drop in the middle of the day. intraday cut by deutsche bank. this is a name i've been short. i think they have a tough niche on the retail area. they sell things people don't really need but they're really kind of cheap. it's a name i covered too, too early. i would stay away from buying it and would not short either. >> netpolitics, up netflix.

up. >> since i can disclose this today the stock has been banging around between 75 and 8 o. today there was a rumor of a takeover. this is also a high/short interest with 30%. >> pop for chesapeake, up 1%. >> panda. just kidding. chesapeake has been riddled constantly with headline risks. there's so many other places to invest in this space. i would stay away from chesapeake. i'm still not a buyer here. >> drop for joy global. down 1%. this was your trade of the day yesterday, tim. >> it's a major drop, down 1%. this was totally in line with the rest of the sector. with 35% of their business being coal related, i think it's priced in there. we've seen a major bottom in the stock. have good support here. somewhere, you know, around these 50s levels. i think you have a place to buy the stock on valuation. >> pop for masco, up 2%. >> makes home building products is really home depot's story today. they get 27% of their revenues

from home depot. and home depot beat their numbers today. 4 cents per share. 200 million on the revenue side. i think home depot is overdone here. masco is even worse. i don't think the valuation is compelling at all. >> we have a drop for france. yes, the country of france. garard, an actor, says au voire. depardieu is reportedly shopping for houses in belgium. no andy mcdowell fans around the set. in a double drop for france, for the first time an american is top dog at the michelin which some call the bible of french astronomy. >> is that a drop for france? depends which side you look at. they may not want him to stick around. >> oh, their loss is our gain. >> that's right. >> belgium's game. coming up next, a man, two tech calls and two very different outcomes.

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sometimes traders hit it out of the park and sometimes not so much. let's play the good, bad and the ugly with steve grasso. first the good. >> i love apple, but i think it's a little bit lofty here. can it go higher? you know, it's the fight all laws of gravity since. since maybe the 300 level. and i would wait to see what happens with apple. i think it can go maybe about $50 or $60 lower before you see that run back up above $700. >> all right. since grasso said that the stock is down more than 17%. >> that was good. should have stopped talking a little bit earlier before that run-up back to 700. that was good. let's leave it at good right now. >> what do you do right now? >> i would want -- to give you a

lead-in, the second part is going to be google. i'd be a buyer of google versus buying apples at this point. >> hold on, now. now for the bad. >> if i were a buyer i would either buy google or i'd be a buyer of amazon. google came out with a better advertising scheme yesterday. and i think it becomes more advertisers who want to market on the website, becomes more of a royalty based versus a fee structure base. >> all right. so that stock is down about 12% since that trade. >> i mean, obviously the market's down, too. right? you want to help a brother out? throw me a lifeline? >> not really. >> a little bit? yeah. i mean, it's a product of the market, just taking out a lot from these high flyers. i still pound for pound, dollar for dollar, you better buy google. >> you're talking about two companies that just missed earnings. you know, and gave pretty murky outlooks. at the end of the day this could be a wait and see.

>> i'm long google. not going to be wait and see for mua. to feed the france back in. >> yeah. >> still a buyer. >> yeah. >> jp morgan hasn't been good, but it hasn't been ugly, either. the stock is down 3% so far this month. are options traders betting on a rebound here? mike, what did you see? >> it was interesting, it traded twice as many calls. 63,000 versus 30,000 puts today. the most active strikes, the january 45 and 46 calls. those jan 45s, 10,000. contract block traded around 29 cents. the buyer of the options obviously hoped it would be above the $45 strike price by january expiration. >> jp morgan? >> this is one today a lot of the banks were up, money center banks and brokers. jp morgan wasn't. for me, 40 seems like a level here. that's something i think you could trade against. at the end of the day, this was one of the hardest hit groups. the ganks aftbanks after last w election. four more years of obama

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welcome back to "fast" live at the nasdaq market site in new york's times square. let's get to jon fortt with the latest on cisco's conference call. >> a few things for you. john chambers got done talking about china saying they will weather the bumps in the market. they're committed to china and the bumps in the market are factored into their guidance. he also talked about collaboration. software saying that during tough economic times, customers tend to take their foot off the gas with collaboration. an explanation for why that isn't growing stronger. said mid single digits is probably a good core, a good target for core router growth.

finally, he talked about services led sales saying that's going to be an increasing part of cisco's growth strategy going forward. services as a percentage of revenue will grow over the next three to five years and panelists will hear more about that at the analyst meeting next month. >> jon, thanks for that update out of silicon valley. b. k., like cisco here? >> as a value play i'm not terribly excited about it. john cahamberchambers, we had t conversation about john chambers that we did about microsoft and people were saying he shouldn't be managing. he's executed. he turned the company around. he's working in this environment and shows up in the revenue and the forecast. >> the other thing that's important is people are so obsessed with the gross margins. he was almost, i thought, saying, listen to what we're doing. this is a different revenue mix. and these data centers are not going to be high margins but they're growing. the thing he also, again, ta talking about the global economy, he wasmaria.

i'm surprised we haven't spent more time on this show because this is a guy we used to spend hours analyzing every he said. i think this -- >> this isless of a bellwether, isn't it? >> they've certainly moved into that kind of low multiple value trap tech stock, but the end of the day they are still in everybody's business and people want to know whether the federal governments are doing, what europe's doing, what air shesia doing. are we about to see a flood of special dividends? dividend tax rates could soar 34.4% from the current 15% if congress fails to strike a deal. companies may be looking to reward shareholders earlier and have the cash to do it, by the way. according to goldman sachs corporate cash balances soared 55% since the end of 2007. those were non-financial companies. historically special dividend announcements tend to be concentrated in the fourth quarter. we're entering a seasonably strong period for special dividends. could this be a record year for

these payouts? we should note goldman sachs had a list of companies, long list of companies they had identifying the companies that had the cash, and might be inclined to pay out the special dividend. in terms of the companies they got right on, wind resorts is up there, western refining was up there. a number of them. they were right on the money when it comes to many of these stocks that they actually identified. >> i played wind resorts. i'm still long the name. there's a couple other names we thought might be special dividend plays along on this list. las vegas, though, is handling their own little bit of a legal issue. so there's probably a problem with them paying it out. i don't know if that's really going to be a chance for them to play in it. i think general dynamics, they have headline risk with this budget issues that's going on right now. but i think b.e.n., there's a chance for b.e.n. >> right. >> i would agree certainly on the financial services side. these are the people that actually, you know, know how to manage in a financial market like this. i still like western refining.

i mean, wnr, the refining space looks fantastic. if you think that oil is going lower, which i do, you can pair a long off a short in oil. that might be a nice way to protect yourself. >> the other part of this, the reason why we're talking about special dividends as opposed to a dividend payout, because if the dividend taxes -- >> get it out of the way. >> exactly. right now the s&p 500, average dividend yield 2.04%. at current tax rates that's 1.73%. if you go worst case scenario on the taxes going higher, that's a 1.15% dividend which amounts to not that much compared to what you're getting paid out now after taxes. >> but a lot of this has been priced in. so i'll just say, you know, utilities everybody knows have gotten destroyed and everyone -- that was the one move. you look at the dow jones utilities index since the election is down about 11%. to me, i would be interested in going back to the utility plays that are now 10% cheaper because my div is -- maybe at 25% on the dividend tax, we're talking

about a 40% increase. i can deal with that based upon where these stocks are trading now. >> a dividend yield of 6%, that's not such a bad hit because your yield is so high. let's hit the twicker here. >> this is what's trending right now. the most celebrated holiday in india is today and thus trending an twitter now. during this time we typically see a strong uptick in gold consumption in india as it's considered auspicious and lucky to purchase gold according to the world gold council. india is battling a slowdown in growth, currency depreciation, factors that could impact gold demand this season. we asked gold bugs what they thought. take a look at what the tweeters had to say. george tweeted the voly doesn't matter. buy and hold and add to positions on significant price breaks. jeff tweets, forget the festival, have 5% in gold and silver at all times. lastly, lewis tweeted in the lackluster market all that glitters just might be gold.

buy the yellow metal. now, the twitter audi unfazed by the impact of the voly. on traders how closely should you watch the consumption and seasonal trends in india? we're talking about the biggest consumer of gold in the world. >> yeah, doesn't matter to you? >> not as much anymore. when you see china starting to really have a big increase in imports, that's important. now india is less important. they're still a huge gold consumer. don't get me wrong. they're less important than they used to be two years ago even. >> it's about the central bank gold trade and who's building up reserves. gold reserves at central banks year over year, it's up 2%. continues to need to go higher. gold as an industrial or metal of primary use is not the reason i'm buying gold but for the diversification which is happening. >> cnbc's jane wells out there in lala land with a preview of what's coming up next. >> we're going to look at the west coast wrap, melissa. interesting timing for honoring a california car. and we're going to cast the

petraeus movie, tim seymour apparently angling for the shirtless fbi agent. we'll have that after the break.

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from mobile devices to medical marijuana we've got you covered in the west coast wrap. how often can you say that? jane wells joins us from the west coast. >> that was just our last weekend. >> yeah, well, we're still waiting for medical marijuana on your mobile device. silicon valley working on an app for that i'm sure. but today story number one just as gasoline finally falls below $4 a gallon in california motor trend picks an all-electric car as its car of the year. the $57,000 tesla sedan made in the golden state -- what are we showing there? look at that. >> why not? >> wrong tape. aren't they pretty to look at? there you go. we'll get to that in a minute. the "s" can go 200 miles on one charge and reach speeds of 133 miles per hour not that i'd know what that's like. the stock is up today. melissa, buy the car or stock? >> grasso, car or stock? >> you know, where jane is stationed at right now, probably seems like a good idea to buy the stock, but i'd rather be buying ford here. i mean, it's just a better, for me, you're still buying unknown

technology. it still has a -- i'll give them this. they look like a survivor, but i'd rather be buying ford in hopes that they can come out with another solution to this issue versus tesla. >> i'd buy the band tesla and buy toyota the prius. >> only you, tim, could do that. >> jane? >> story number two. lumbering up. lumber futures way up their loans in june, though down today. due to better housing outlooks and rebuilding after superstorm sandy. lumber liquidators got a downgrade to sell from stifel nicolaus. >> well done, jane, well done. >> melissa, what "wood" you all do about lumber? >> oh, wood. b. b. b.k., what do you say? >> i tell you, i'm going to go against the grain on this one. >> overload. >> you know, lumber liquidators is not the way to play this. i think wire houser works here. lumber is up 26% off the lows. with wire housing you get the

lumber play, plus natural resources play, plus get a dividend as well. 2630 where it closed today seems to have decent support around 26. just below 26 i'd set by stop. >> i have to hear about this petraeus movie. >> really? i'm old. >> this is my favorite story. this is hollywood and this petraeus script is writing itself. the saga gets bigger every day. we started casting an inevitable film. notice karen finerman looks like paula broadwell. >> she's got the guns, too. >> she isn't here today. >> gee. >> i'm just -- >> here's the oscar winning version. okay? you saw it before. al pacino will play david petraeus, hilary swank paula broadwell. and chris cooper as general john allen. then the comedy version. martin short as petraeus. elaine as broadwell. get out. sophia ver gar ra as jill kelly. and my favorite, tilda as

general john allen. we have more suggestions at cnbc.com. >> oh, that's a -- >> only you, jane wells. >> i'm glad it wasn't me as petraeus. >> it could be. it could be, depending -- >> no, but take your shirt off. be the fbi agent. >> i've got to wax my chest first, jane. let me -- let's do that the next show. >> plus we're still on the air, jane. >> tmi. >> good to see you. see you tomorrow. coming up next on "fast" a trader is taking a picture perfect trade of day. stay with us. we're going to lift the curtain and reveal what it is. stay tuned.

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welcome back to "fast money." an update in the case of john mcafee, the founder of mcafee security systems. he is wanted for questioning in relation to a murder of an ex-pat in belize. this afternoon, he spoke with cnbc's investigation inc's producer and said he right now is moving every four hours in belize because he is fearful for his safety. he says he has been accused of something that he didn't do. in other conversations he has said he worries police just want to effectively shake him down

and extort him for money. we'll have more as we get more information. once again, john mcafee saying he is accused of something that he didn't do and is constantly on the move, melissa, because he fears for his safety. >> he's still in belize, right? >> apparently he is. but he says he's on the move. >> right, bertha, thanks for that. amazing because you think every four hours in a small country like belize you pretty much will have gone everywhere in a very small amount of time. >> so weird that a security guy is such a security risk. >> exactly. ironic. sometimes it is tough to buy the losers and sell the winners. let's play hold em or fold em. first off, intel down 16% from a year ago. marking its 52-week low. grasso? >> only thing good about this stock is the yield. the headline at apple is try to move away from the intel processer, not a great spin for intel. i still wouldn't be buying it. you know, there's that all theory the losers lose more. the winners win more. there you go right here. i wouldn't be a buyer on this

loser. >> next up, here home depot, 52-week high today. it is up 68%. over the past year. tim, what do you say? >> frank lake, ceo -- scott joplin sounds really nice here, doesn't it? bottom line, this is a company executing on the management level and ceo that's very conservative and at the beginning of a housing recovery. that's indis muputable at this point. the company is earning praise from market. it goes higher. these are great numbers today and they upgraded their estimates. >> mike, real quick, i know you were negative on "options actions." i'm not optimistic on this one. most eps growth you're seeing is represented to share buyback. not seeing wider margins than we did in 2006 and not seeing big top-line revenue growth. i'm not enthusiastic of home dep depot. the moment you've been waiting for, trade of the day. tim seymour? >> tronix.

it's a $2 billion-plus company. it's down 20% today. so just to preface this, this is not for the faint of heart. this is a company that traded record volumes today. third largest global producer of titanium dioxide for pigments, paints. this is definitely a stock which is linked to global recovery, linked to housing recovery and construction, especially in this country. so if you look at that chart, the concern is this is a company, they're a price taker. the underlying price of their products has been falling. in 2008 they went through bankruptcy. that's what people are concerned about based upon the health of this company in the past. that's not the current balance sheet. four times earnings. this is a stock you watch, don't need to buy it today. it's ridiculously cheap. if you believe in housing, this is a stock you want to look at. >> other makers of this input into paint includes some of the big chemical companies. >> like a dupont and guys that can push pricing around and tronox, the third largest player

is a price taker. >> not for the faint of heart. b.k., you've been known to make off the wall trades. >> thank you. thank you very much. >> we all looked at you and said rare earths, what was that all about? you actually did okay on that one. so on tronox, would you rather go tronox or go big chemical makers or go a paint maker like sherman williams? >> i'd go to the chemical makers. i'm not a huge fan of them at this time. off the wall trades, molly corp had a -- >> need to find my trade of the day, by way, it's an off the wall trade. >> i think it's more the volatility in the trade. when you have something that has this type of volatility it has to have a catalyst to get it moving again and needs to have a monopoly or ologopoly on the particular business. that's where i'd go for the off the wall area. for tim's trade, it's fine. >> off the wall -- >> michael jackson. >> -- for me is a compliment.

i like the off the wall. $2.4 billion market cap, tronox, not a small company. coming up next on "mad money" cramer has exclusive with two executives that could impact your portfolio. clean energy fuels after its big announcement today. and honeywell ceo dave cote on his role to fix the debt in the fix the debt campaign. can the u.s. takes the steps to avoid the fiscal cliff? stay tuned. sick of paying up at the pump? i have a guy with a solution. plus it's not just the stock market, tax increases and the budget cuts of the fiscal cliff that could hit your wallet in a big way. tonight i'm helping you understand what's at stake. "mad money" is coming up next. if you are one of the millions of men

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time for the final trade. let's go around the horn. mike? >> tesla is a car company, not a tech company. if you own the stock, sell. >> ambassador. >> to use a guy adami phrase, give yourself -- >> if you're long home depot, use its strength. multiyear highs. i bought a put spread in february. >> let's me preface, i'm not in a hurry to buy anything. pxd for my final trade. >> b.k.? >> i, too, would use tight stops like guy and tim does. you know, i like the refiner trade here. you certainly could have lower oil, as i